The Federal Arbitration Act (FAA) favors the enforcement of arbitration agreements, but employers can’t wait too long to compel arbitration. Courts often apply a contract “waiver” rule if employers sit on their rights too long (meaning the court finds a party waived its right to arbitrate if it failed to start the process soon enough). But some courts were applying a special rule requiring an additional demonstration that one party suffered prejudice (or harm) when the other didn’t compel arbitration soon enough. But is a showing of prejudice really necessary? The U.S. Supreme Court says no.
